36 StAte of mAin FALL 2016

Downtowns matter

Travel teaches you many things, not the least of which is that downtowns matter. Downtowns are the heart and soul of our communities. They are also an indicator of larger social and economic trends. For many years, the decline of America’s downtowns was an indicator of a larger trend of people and jobs leaving cities for our far flung suburbs. Now, our down- towns are coming back to life and they are a harbinger of larger social, economic, demographic and technological trends.

Photo: Ed McMahon DOWNTOWNS MATTER 37

By Edward T. McMahon

Edward T. sensitive develop- periodicals. He Downtowns matter There are over 25,000 incorporated commu- McMahon is the ment policies and serves on several Chairman of the nities in America. Many are prospering, but practices. He is also advisory boards NMSC Board of a senior staff and commissions many others are not. How is it that some Directors. He also adviser for ULI’s including the small cities and towns can prosper, while holds the Charles Building Healthy Chesapeake many others are suffering disinvestment, loss Fraser Chair on Places Initiative, Conservancy, the of identity and even abandonment? Sustainable and is a sought- Governors Institute

Why are some communities able to maintain their Development and after speaker and for Community historic character and quality of life in the face of a is a Senior Resident thinker on land use Design and the rapidly changing world, while others have lost the Fellow at the Urban and economic Orton Family very features that once gave them distinction and Land Institute in development Foundation. appeal? How can communities, both big and small, Washington, D.C., trends. McMahon McMahon has an grow without losing their heart and soul? where he leads the is the author or MA in urban organization’s coauthor of 15 studies from the

From coast to coast, communities are struggling to worldwide efforts books and writes University of

answer these questions. After working in hundreds of to conduct regularly for Urban Alabama at

communities in all regions of the country, I have come research and Land magazine, Birmingham and a

to some conclusions about why some communities educational Citiwire, Planning JD from George-

succeed and others fail. Main Street communities activities related Commissioners town University

have found ways to retain their small town values, to environmentally Journal, and other Law School. historic character, scenic beauty and sense of commu- nity, yet sustain a prosperous economy. And they’ve done it without accepting the kind of cookie-cutter It’s clear, for instance, that successful communities development that has turned many communities into involve a broad cross-section of residents in determin- faceless places that young people flee, tourists avoid ing and planning for the future. They also capitalize on and which no longer instill a sense of pride in residents. their distinctive assets—their architecture, history, natural surroundings, and home grown businesses— rather than trying to adopt a new and different identi- ty. Most successful communities also utilize a variety Every “successful” community of private-sector and market incentives to influence has its own strengths and new development, instead of relying solely on govern- ment regulations. weaknesses, but they all share some common characteristics. 38 StAte of mAin FALL 2016

trends and consumer attitudes are always changing Not every successful community displays all of and they will affect a community whether people like it the following characteristics, but most have or not. There are really only two kinds of change in the made use of at least three or four: world today: planned change and unplanned change.

1) Have a vision for the future Communities can grow by choice or chance. Abraham

2) Inventory assets Lincoln used to say that “the best way to predict the future is to create it yourself.” Communities with a 3) Build plans on the enhancement of existing assets vision for the future will always be more successful than

4) Use education and incentives, not just regulation communities that just accept whatever comes along.

5) Pick and choose among development projects INVENTORY COMMUNITY ASSETS Creating a vision for the future begins by inventorying 6) Cooperate with neighbors for mutual benefit a community’s assets: natural assets, architectural as- 7) Pay attention to community aesthetics sets, human assets, educational assets, recreational assets, economic assets, etc. Successful communities 8) Have strong leaders and committed citizens then build their plans—whether a land use plan, a tourism plan or an economic development plan— around the enhancement of their existing assets. HAVE A VISION FOR THE FUTURE

Successful communities always have a plan for the fu- Twenty-first century economic development focuses ture. Unfortunately, “planning” is a dirty word in some on what a community has, rather than what it doesn’t communities, especially in small towns and rural areas. have. Too many communities spend all their time and In some places, this is the result of today’s highly money on business recruitment. They build an industri- polarized political culture. In other places, it results al park out by the airport and then they try like crazy from a misunderstanding of planning and its value. to attract a plant, factory or distribution center to The truth is, failing to plan, simply means planning to move there. The few communities that are successful fail. It is difficult to name any successful individual, organization, corporation or community that doesn’t plan for the future.

Try to imagine a company that didn’t have a business plan. It would have a very hard time attracting inves- tors or staying competitive in the marketplace. The same is true of communities. A community plan is simply a blueprint for the future. People may differ on how to achieve the community’s vision, but without a blueprint, a community will flounder.

Understandably, people in small towns don’t like change. But change is inevitable. Technology, the economy, demographics, population growth, market

A community without a plan for the future is simply planning to fail.

Photo: Urban Land Institute DOWNTOWNS MATTER 39

at this strategy usually accomplish it by giving away Boston and Baltimore, but similar projects went bank- the store. The old economic development paradigm rupt in Toledo, Richmond, Jacksonville and a dozen was about cheap land, cheap gas and cheap labor. It other communities. Successful economic develop- was about shotgun recruitment and low cost positioning. ment is rarely about the one big thing. More likely, it is In the old economy, the most important infrastructure about lots of little things working synergistically investment was roads. Today, successful economic together in a plan that makes sense. In her award development is about laser recruitment and high value winning book—The Living City—author, Roberta Gratz positioning. Today highly trained talent is more says that “successful cities think small in a big way.” important than cheap labor and investing in education Two examples of this are Silver Spring, Maryland, and is far more valuable than widening the highway. Cleveland, Ohio. Cleveland had an aging, undersized American communities are littered with projects that convention center. Civic boosters argued for a huge were sold as a “silver bullet” solution to a city’s eco- new convention center that could compete with much nomic woes: the New Jersey State Aquarium in Cam- bigger cities like Chicago, Atlanta or Minneapolis. But den, Vision Land Amusement Park in Birmingham, the small cities like Cleveland will never win in an arms Galleria Mall in Worchester, Massachusetts, the Winter race to build the biggest convention center. Instead Garden in Niagara Falls, New York, to name just a few. Cleveland took a look at its assets, one of which is the Cleveland Clinic: a world renowned medical center Too many communities think that economic revival is located a short distance from downtown. Instead of about the one big thing. Whether it is a convention trying to compete head-on with every other convention center, a casino, a festival marketplace, a sports arena city, Cleveland decided to build a smaller, less expensive or an aquarium, city after city has followed the copy- meeting facility focused on medical conventions and cat logic of competition. If your city has a big conven- which would have an attached medical mart, affiliated tion center, my city needs an even bigger one. Festival with the Cleveland Clinic. marketplaces, for example, worked fine in cities like

ECONOMIC DEVELOPMENT

20TH CENTURY MODEL 21ST CENTURY MODEL

Public sector leadership Public/Private Partnerships

Shotgun recruitment strategy Laser recruitment strategy

Low cost positioning High value positioning

Cheap labor Highly trained talent

Key infrastructure = roads Key infrastructure = education

Focus on what you don’t have Focus on what you do have

Driven by transactions Driven by an overall vision

Photo: Downtown Goldsboro Development Corporation 40 StAte of mAin FALL 2016

Another example of asset based require a $200 million public sub- tions Corp, which was then housed economic development is Silver sidy. It would also mean the demo- in several different locations Spring, Maryland. For many years, lition of most of downtown Silver around the Washington area. The Silver Spring was the largest sub- Spring’s existing buildings. site where Discovery Communica- urban commercial center in the tions decided to build their new So what happened? Community Mid-Atlantic region, but, by the headquarters was adjacent to the leaders rejected the massive Amer- early 1990s Silver Spring had fallen Silver Spring Metro Station. Bringing ican Dream Mall and set their sights on hard times. A 1996 story in The 1,500 employees into downtown on a succession of more modest Economist said “You can see Silver Spring was a huge boost to developments. First, they realized America wilting in downtown Silver the community, but what really that despite its decline, Silver Spring. Old office blocks stand synergized the renewal was Dis- Spring had some important assets empty. A grand art deco theater is covery Corp’s agreement not to that were probably more valuable frequented only by ghosts. Glitzy build a cafeteria in their new head- than a giant mega-mall. Silver department stores have decamped quarters building. This meant em- Spring was adjacent to Washington, to out-of-town shopping malls. ployees would have to patronize D.C., the nation’s capital. Second it Tattoo parlors, pawnbrokers and local restaurants. This kick-started was served by transit (i.e. the discounters remain.” the revitalization of Silver Spring Washington Metro system) and and led to dozens of other projects To combat this decline, local offi- third it was surrounded by stable including new housing, retail and cials and an out of town developer middle-class neighborhoods. entertainment venues. proposed to build a second Mall of Rather than spending $200 million America (like the one in Bloomington, BUILD PLANS AROUND subsidizing a giant mall, county Minnesota). The proposed mega- EXISTING ASSETS and state officials collaborated to mall would have 800 stores and it After communities have invento- find a site for the new headquar- would cover 27 acres. The projected ried their assets, they shape their ters for the Discovery Communica- cost was $800 million and it would future around them.

Whether it is a land use plan, a tourism plan, a downtown redevelopment plan or an economic development plan, savvy communities build on what they already have.

Sometimes the assets of a com- munity are obvious. Other times, they are not so obvious. Annapolis, Savvy communities such as Annapolis, Maryland, plan around their existing assets and build on what they already have. Maryland, for example, has obvious

Photo: Ed McMahon assets: an abundance of historic DOWNTOWNS MATTER 41

To encourage rehabilitation of historic buildings, Staunton Downtown Development Association offered free design assistance to downtown business owners who agreed to restore the façade of their building. This incentive was a huge success and today there are five historic districts in the Virginia Main Street community, including the entire downtown.

Photo: Kathy Frazier

Today, Lowell, Massachusetts, is one of the Rust Belt’s great success stories. Visitors will now find that the once empty mills have come back to life as affordable housing, luxury apartments, shops and restaurants, even the University of Massachusetts at Lowell has moved back downtown into restored industrial buildings.

USE EDUCATION AND INCENTIVES NOT JUST REGULATION buildings, an attractive and accessible waterfront and Successful communities use education, incentives, a long history of maritime activity. Given these assets, partnerships and voluntary initiatives, not just regula- it is only natural that Annapolis has become the home tion. To be sure, land use regulations and ordinances of both the National Sailboat Show and the National are essential to protecting public health and to setting Powerboat Show, which together attract more than minimum standards of conduct in a community. Reg- 90,000 visitors a year. ulations prevent the worst in development, but they Jackson, Wyoming, is another community with obvi- rarely bring out the best. Regulations are also subject ous assets: world class scenery, unparalleled wildlife to shifting political winds. Often one county commis- and outdoor recreation resources. Jackson and Teton sion or town council will enact tough regulations only County, Wyoming, have built their tourism economy to see them repealed or weakened by a future town around the marketing and promotion of these assets. council with a different ideology or viewpoint. However, they have also built their land use plans If regulations aren’t the entire answer, how can a com- around the protection of these assets. For example, munity encourage new development that is in harmony they prohibit outdoor advertising to ensure that the with local aspirations and values? Communities need world class scenery is not degraded. They have to use carrots not just sticks. This is the essence of the mapped the wildlife migration corridors to ensure that Main Street Approach. Main Street communities use the large herds of elk that winter on the edge of town education, partnerships and voluntary initiatives. Main keep coming, etc. Street communities have also identified a variety of In other communities the assets are not so obvious. creative ways to influence the development process Consider Lowell, Massachusetts. In 1975, Lowell was a outside of the regulatory process. Some of the incen- dying industrial city. It had an unemployment rate of tives they use include: conservation easements, pur- over 20 percent; it was littered with abandoned facto- chase of development rights, expedited permit review, ries and empty textile mills. It was hemorrhaging jobs tax abatements that promote the rehabilitation of his- and people. The common wisdom was that without toric buildings, award and recognition programs, density manufacturing, it had few assets and a dim future. bonuses for saving open space and other techniques. 42 StAte of mAin FALL 2016

Most would agree that the design of the McDonald’s restaurants in Lewiston, New York, (left) and Asheville, North Carolina, (right) are better than the standard design with which we are all familiar.

Photo: Ed McMahon

In Staunton, Virginia, the Main Street program offered not. The biggest impediment to better development free design assistance to any downtown business in many communities is a fear of saying “no” to anything. owner who would restore the façade of their building. In my experience, communities that will not say no to They did this after the city council had rejected a anything will get the worst of everything. The proof is measure to create an historic district in downtown everywhere. Communities that set low standards, or Staunton. At first, only one business owner took no standards, will compete to the bottom. On the other advantage of the incentive, but then a second business hand, communities that set high standards will compete owner restored his building façade, and then a third, to the top. This is because they know that if they say and then many more. Today, there are five historic no to bad development they will always get better districts in Staunton, including the entire downtown, development in its place. but it all began with an incentive. Too many elected officials have an “it’ll do” attitude Successful communities also use education to encourage toward new development. Worse yet, they’ll accept voluntary action by citizens. Why do cities and towns anything that comes down the pike, even if the need to use education? Because, education proposed project is completely at odds with the com- reduces the need for regulation. Also, because people munity’s well-thought-out vision for the future. They and businesses will not embrace what they don’t are simply afraid to place any demands on a develop- understand. Finally, community education is important er for fear that the developer will walk away if the because, citizens have a right to choose the future, but community asks for too much. This is especially true they need to know what the choices are. when dealing with out-of-town developers or with national chain stores and franchises. PICK AND CHOOSE AMONG DEVELOPMENT PROJECTS The bottom line for most developers, especially chain All development is not created equal. Some develop- stores and franchises, is securing access to profitable ment projects will make a community a better place trade areas. They evaluate locations based on their to live, work and visit. Other development projects will economic potential. If they are asked to address local DOWNTOWNS MATTER 43

design, historic preservation, site planning or architectural concerns they will usually do so. Bob Gibbs, one of America’s leading development consultants, says that “when a chain store developer comes to town they generally have three designs (A, B or C) ranging from Anywhere USA to Unique (sensitive to local character). Which one gets built depends heavily upon how much push back the company gets from local residents and Davidson, North Carolina, did not settle for the “Plan A” design. officials about design and its importance.” Photo: Ed McMahon

One community that has asked chain stores and franchises to fit-in is Davidson, North Carolina. Chain drugstores, like CVS, Rite Aid and Walgreens are proliferating across the country. They like to build featureless, single-story buildings on downtown cor- ners, usually surrounded by parking—often after one or more historic buildings have been demolished. This is what CVS proposed in Davidson. The town could have easily accepted the cookie cutter design (Plan A), but instead it insisted on a two story brick build- ing, pulled to the corner with parking in the rear. CVS protested, but at the end of the day they built what the town wanted because they recognized the economic value of being in a profitable location. The lesson learned is that successful communities have high expectations. They know that community identity is more important than corporate design policy.

COOPERATE WITH NEIGHBORS FOR MUTUAL BENEFIT Historically, elected officials have tended to view neighboring communities, the county government and even the managers of adjacent national parks or other public lands as adversaries rather than allies. Some community leaders see economic development as a “zero-sum” game: if you win, I lose. Successful communities know that today’s world requires coopera- tion for mutual benefit. They know that the real competition today is between regions. They also understand that very few small towns have the resources, by themselves, to attract tourists or to compete with larger communities.

Regional cooperation does not mean giving up your autonomy. It simply recognizes that problems like air pollution, water pollution, traffic congestion and loss of green space do not respect jurisdictional boundaries. Regional problems require regional solutions. 44 StAte of mAin FALL 2016

There are numerous examples of a quote from a civic activist in communities working together for Southern California, who said “we Successful communities mutual benefit. In the Denver Re- were in favor of progress, until we understand that “the image of gion, 41 communities cooperated to saw what it looked like.” Looks a community is fundamentally support funding for a regional tran- count! Aesthetics matter! Mark sit system (i.e. Fast Tracks). Cleve- Twain put it this way, “We take stock important to its economic land area communities cooperated of a city like we take stock of a man. well-being”. to build a Metro parks system. Metro The clothes or appearance are the Minneapolis and St. Paul collabo- externals by which we judge.” rate on tax base sharing. Even small Every single day in America people Over 80 percent of everything rural communities can cooperate make decisions about where to ever built in America has been for mutual benefit. Small towns in live, where to invest, where to built since about 1950, and a lot of Mississippi have worked together to vacation and where to retire based what we have built is just plain organize and promote US 61 as “the on what communities look like. ugly. There are still many beautiful Blue’s Highway,” linking Memphis Consider tourism, for example. The places in America, but to get to with New Orleans. Similarly, five more any community in America these places we must often drive rural counties on Maryland’s Eastern comes to look just like every other through mile after mile of bill- Shore collaborated with the Eastern community, the less reason there is boards, strip malls, junk yards, Shore Land Conservancy to create to visit. On the other hand, the used car lots, fry pits and endless a regional agreement to preserve more a community does to protect clutter that has been termed “the farmland and open space. and enhance its unique character, geography of nowhere.” The prob- whether natural or architectural, PAY ATTENTION TO AESETHICS lem is not development, per se; the more people will want to visit. During the development boom of rather, the problem is the patterns This is because tourism is about the 1980s, Time magazine ran an of development. Successful com- visiting places that are different, article about what they called munities pay attention to where unusual and unique. If everyplace “America’s growing slow-growth they put development, how it is was just like everyplace else, there movement.” The article began with arranged and what it looks like. would be no reason to go anyplace. Think about the slogan “Keep Aus- tin Weird,” for example. What this really means, is keep Austin differ- ent. In today’s world, community differentiation is an economic development imperative.

Successful communities pay atten- tion to aesthetics. They control signs, they plant street trees, they protect scenic views and historic buildings and they encourage new construction to fit in with the The problem is not development, per se; rather, the problem is the patterns of development. existing community. Photo: Ed McMahon DOWNTOWNS MATTER 45

STRONG LEADERS AND COMMITTED CITIZENS Successful communities have strong leaders and com- mitted citizens. The Main Street Approach has proven over and over again that a small number of committed people can make a big difference in a community. Sometime these people are longtime residents upset with how unmanaged growth has changed what they love about their hometown. Other times, the leaders might be newcomers who want to make sure that their adopted hometown doesn’t develop the same ugliness or congestion as the one they left. More often than not, they’re simply citizens who care a great deal about their community. An example of a single citizen Leaders of successful who made a big difference is Jerry Adelman. Jerry communities know that “yes” is a more powerful word than “no.” grew up in the small town of Lockport, Illinois. Almost Photo: Ed McMahon single-handedly, Jerry created the Illinois and Michi- gan Canal National Heritage Corridor, which helped A pessimist sees difficulty in every opportunity. An restore an abandoned canal linking Lockport with Chi- optimist sees opportunity in every difficulty. cago. Adelman’s success at building local support for CONCLUSION the canal convinced Congress to add the canal corri- We live in a rapidly changing world. In his new book, dor to the national park system. The Great Reset, author Richard Florida says that “the There are hundreds of examples of small groups of post-recession economy is reshaping the way we live, people working successfully to improve their commu- work, shop and move around.” He goes on to predict nities. Some of these people are elected officials, like that “communities that embrace the future will pros- Joe Riley, the ten-term mayor of Charleston, South per. Those that do not will decline.” Downtown is a big Carolina. Others are private citizens, like Robert Grow, part of our future. People and businesses are moving the founder of Envision Utah. Leadership is critical, back downtown because this is the easiest place to but often unappreciated. As the mayor of one small attract and retain talent workers. It is also the place town in Upstate New York once remarked to me, “if where people and ideas can easily connect. The future you don’t care who gets the credit, you can get an belongs to downtowns and communities that favor awful lot accomplished.” people over cars. Today people and businesses can choose where they want to live, vacation, invest or re- WHAT ABOUT THE NAYSAYERS? tire. In today’s world, communities that cannot differ- Every community has naysayers. Whatever the civic entiate themselves will simply have no competitive or community leaders propose to do, some people advantage. This means that quality of life is more will always say things like: “you can’t do it,” “it won’t important than ever. Successful communities know work,” “it costs too much,” “we tried that already.” that sameness is not a plus. It is minus. Successful And, “no,” is a very powerful word in a small commu- communities set themselves apart. They know that nity, but leaders of successful communities, especially communities that choose their future are always more Main Street communities, know that “yes” is a more successful than those that leave their future to chance. powerful word. Yes, we can make this town a better place to live in, to look at, to work in, to visit.